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HomeMy WebLinkAboutMIN SEP 01 1998 M I N U T E S -, CITY OF BEAU ONT Lulu L.Smith DAVID W. MOORE, MAYOR Bobbie J.Patterson,Mayor Pro Tem Guy N.Goodson CITY COUNCIL MEETING Andrew P.Cokinos John K. Davis SEPTEMBER 1,1998 Becky Ames Lane Nichols,City Attorney Ray A. Riley,City Manager City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on September 1, 1998, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Call * Presentations and Recognition Public Comment: Persons may speak on scheduled agenda items Mayor Moore called the meeting to order at 1:30 p.m. Father William Manger, Saint Anne's Catholic Church , gave the invocation. Councilmember Cokinos led the pledge of allegiance. Present at the meeting were: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis. Also present were Ray A Riley, City Manager; Lane Nichols, City Attorney; and Barbara Liming, Deputy City Clerk. Mayor Moore announced that today is Councilmember Cokinos's birthday and extended best wishes to him. *Presentations and Recognitions Milt Prewitt, co-chairman of the Beaumont Economic Development Commission of the Chamber of Commerce updated activities of the past year. He reviewed their goals of accountability and assessed their efforts of achievement. Mr. Prewitt said even though they did not meet the goal of business visits, quality visits were made to C & D Robotics, Epco, Postal Encoding facilities, the Texas Aerospace Commission and others. He announced that a reception will be held in Houston during the first quarter of 1999 to solicit Beaumont as a consideration for business location. Mr. Prewitt stated that they are not only running the race for economic development, but running with one goal--to win. Mr. Prewitt thanked Council for the $50,000 funding last year and requested Council consider increasing that amount, if funds are available in the budget. Councilmember Davis inquired about Mr. Ramsey's relocation and search for a new president for the Chamber. Chamber staff reported that Mr. Ramsey has taken a position in Plano and that a search committee for a new president has been formed and headed by Mr. Tom Gober, and that they are looking for someone dedicated to economic development. Councilmember Davis suggested that economic development be number one on the agenda for the Chamber and that the new president be someone who understands the value of diversity and be open to minority businesses. *Public Comment: Citizens were invited to comment on the Consent Agenda and Main Agenda Items 4 and 5. No one wished to address these subjects. *Consent Agenda The following consent agenda items were considered: * Approval of the minutes of the regular meeting held August 25, 1998; Confirmation of committee appointments - Resolution No. 98-228 (Mr. Lynn DeMary to the Board of Adjustment--Zoning for a term expiring 8/31/2000; Phillip Long to the Historical Landmark Commission for term expiring 8/31/2000; Bill Lucas reappointed to the Planning Commission for term expiring 413/2000; Glenn Bodwin to the Planning Commission for term expiring 8/31/2001; Robert Harris reappointed to the Parks & Recreation Advisory Committee for term expiring 8/15/2000; and Ann Heidke-Poyner to the Library Commission for term expiring 8/31/2000.) A) Authorize the City to apply for and accept if awarded a D.W.I. Selective Traffic Enforcement Program Grant from the Texas Department of Transportation (in the amount of$30,00 and the City responsible for$7,500, a 25% match) - Resolution No. 98-229 B) Approve an agreement with Lamar University to continue the SETCAST Program Department ( Payment in the amount of$9,500 to continue taping of City Council meetings by Lamar University Department of Communications from 9/1/1998 to 8/31/1999) - Resolution No. 98-230 C) Approve the acquisition of properties for the Concord Road Improvement Project - Resolution No. 98-231 (1: Parcel 9, 0.116 acre out of James Drake Survey, Abstract 28, 2470 Concord Road, in the amount of$5,029.50 from Chase Bank of Texas, Trustees for Truly L. Hattem and Deborah L. Fesenthal; and 2: Parcel 70, 0.178 acre out of A. Williams Survey, Abstract 385, 3665 Concord Road, in the amount of $18,435 from Ruth Ann Stanford Lackey.) D) Approve the purchase of four wastewater pumps for use at the City's Sewage Treatment Plant (from Pumps & Equipment of Texas, Inc. in the amount of$15,600) - Resolution No. 98-232 Minutes;9/01/98;Page 2 E) Approve a transfer of line items in the Community Development Block Grant Program (Reprogram $150,000 from Charlton-Pollard Economic Development line item to a new program titled Rental Rehabilitation-Multi-Family under Housing and $40,000 to the Small Business Revolving Loan Fund) - Resolution No. 98-233 Councilmember Cokinos moved to approve the Consent Agenda. Councilmember Davis seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames and Davis Noes: None GENERAL BUSINESS 1. PUBLIC HEARING: FY 1999 Operating Budget Prior to opening the public hearing, the City Manager reviewed the Fiscal Year 1999 Operating Budget that has been presented to Council. The budget is contained in four different funds with a total of$127,595,200 proposed for the FY1999 budget. The General Fund is the major portion of the budget with allocations of $63,280,000. Mr. Riley enumerated expenses and revenues in this area. Totals of the four funds are: Governmental Funds--$74,466,00; Enterprise Funds--$26,469,000; Special Revenue Funds--$9,531,200; and Internal Service Funds--$17,129,000; for a total budget of $127,595,200. There are no proposed increased fees for either water, sewer or solid waste. The public hearing was opened at 1:51 p.m. Mr. C. L. Sherman, Belvedere Drive, addressed three criteria used for rating the desirability of a city as clean air, crime and property taxes. Mr. Sherman said he has had an interest in property taxes for fifteen years, and said there are three reasons to raise taxes: growth, inflation, and special projects. He said we have had about a 4.8% increase in appraised values, and that a 3% rate is used as a benchmark for the inflation rate. Mr. Sherman disagreed with that figure. He said the rate in Texas is 1.2% and regionally is 1.4%. Mr. Sherman said if we base an increase on the 3% national inflation rate, we become the cause of inflation. He recommended that special projects should be revenue producing projects. If the budget is raised on special projects, Mr. Sherman said he strongly recommends that '/ cent be earmarked for economic development. Minutes;9)01198;Page 3 Mayor Moore told Mr. Sherman that Council has had discussion about economic development and the need to create a line item to make Beaumont competitive and more will be heard about how to start building to become and remaining competitive. Mr. Wade Graham stated he is opposed to any tax increase, said that government is out of control and we must start to get control at this level. He said property taxes are high, that a cut-back in the area of human resources is the only place to get the money, and said the City employs too many people that do too little. Mr. Jude Peredez, said that he thinks a proposed tax increase is linked to the proposed hockey rink and the $77 million debt that consumes half of the property tax received. Mr. Peredez suggested that instead of spending $3 million on the hockey rink to apply that much to City debt. He compared management salaries to growth and unemployment. There being no one else to address the operating budget, the public hearing was closed at 2:01 p.m. 2. PUBLIC HEARING: 1999 Capital Program Mr. Riley explained to the public that the Capital Program is related to construction of streets, storm drainage, public buildings and other facilities used for public purposes. Each year needs of the community are reviewed and extended for five years. Council has received information about these projects, and currently the Capital Improvement Program is here for further consideration. Mr. Riley referred to the list of current projects under construction that include the Alice Keith swimming pool, fire station construction, fire and training center improvements and other proposed construction projects that have been approved and those in the planning phase that include the police building renovation and Spindletop Branch Library construction. There are general improvements to be approved and added that include an airport runway extension, Beaumont Yacht Club additions, Athletic Complex-softball fields and construction of a Streets and Drainage maintenance facility. The Capital Improvement Program includes all the planned construction of City projects and may be paid for out of cash or general obligation debt. Substantial revenues have been applied to these projects from various grants and not funded from property tax revenue. Revenues are received from all available sources of support. Councilmember Davis opened Council comments by referring to an item on the Consent Agenda reprogramming CDBG funds under the Charlton-Pollard Economic Development line item and support to the Jr. League. He asked for a breakdown of remaining funds and questioned the start date for the Concord Road Project and was updated on the status with the ground breaking to be about November 5. Minutes;=1 W;Page 4 Councilmember Goodson asked that for the benefit of the audience projects that will be going from the design phase into construction during the next year be listed. Mr. Riley stated that Public Works Improvements projects include: Major Drive, Concord Road—IH-10 to Lucas, Concord Road North Outfall, Prince Street Outfall, Neches River Hike and Bike Trail, Walden Road—Major to IH-10, Walden Road—Ditch 109, Chaison Street— Threadneedle to Harriot, Franklin Street—ML King to Neches, and Ector Street Ditch. In the planning phase is: Caldwood Outfall, Folsom--Dowlen to Major, Moore Street Relief, and Old Dowlen—SH 105 Connector. There are two other proposed program additions: Walden Road—IH-10 to Fannett and Phelan Boulevard—Major Drive to west of Westbrook High School. Councilmember Goodson further asked for those that might be under construction in the next 12 months, and Mr. Riley reported that the Amelia Neighborhood Park should be completed and said fire station bids were higher than expected and will be revised. The Municipal Court building is currently under construction, the police building renovations will begin when Municipal Court is relocated. Councilmember Davis commented about the Internal Affairs Division locating in the space that Municipal Court will vacate. Councilmember Goodson stated that if these improvements occur, three new fire stations will be moved on line and the Police Department will be enabled to utilize the Municipal Court space to handle Police complaints in a less intimidating atmosphere. Mayor Moore discussed funding of these projects and the quality of life they offer. Mr. Riley commented about these projects being future progress and the strong improvements made in street and storm drainage since 1980. Part of the debt we feel now is paying for those improvement benefits. Further discussion included past flooding problems, working collaboratively with DD6 on projects, prioritizing projects, the length some proposed projects have been under consideration, infrastructure, and extension of water and sewer lines. The public hearing was opened at 2:25 p.m. Mr. Lynn DeMary, 430 East Elgie, pointed out that cutting Capital Improvements would be a great opportunity to make cuts and hold the tax rate, but would also diminish important benefits given back to citizens. He said it would be a political, as well as a financial decision. Mr. DeMary said improvements made recent years have been ones under consideration for a period of time, and it was the political will of the citizens to move forward on them. He commended Council, but advised them to be careful in going forward because of high payments that will have to be made. Mr. DeMary suggested matching added projects to the growth rate of our tax base to maintain the current or proposed tax rate. Minutes;9101198;Page 5 Mrs. Kathryn Wiggington, Elgie Street, commended Council for completing the Chaison Street project and inquired when the Spindletop Branch Library might be started. Mr. Riley said the next step is site selection, then moving toward design and construction next year. Mayor Pro Tem Patterson commented that she would like to see Virginia Street, Mercantile to Avenue A, in front of Odom Academy added to Public Works Improvements as Proposed Program Additions. She expressed concern for the safety of the children. There being no one else to speak, the public hearing was closed at 2:30 p.m. 3. PUBLIC HEARING: FY 1999 Property Tax Rate Mr. Riley summarized past Council conversation regarding a proposed tax rate. He said the current tax rate is $.615 and anticipate total revenue in the General Fund to be $.36 or $12,750,000 and the Debt Service Fund to be $.255 or $21,750,000. The increase in appraised values will increase property tax revenues by 4.3% without changing the tax rate. Mr. Riley said the entire increase is related to debt service. The increase in principle and interest on debt service this year will increase by almost $1.9 million. Mr. Riley reviewed past considerations of a tax increase and the ability to defer that increase due to refunding and refinancing of the principle and interest of the debt and settlement of a law suit. He said the proposed $.025 increase would provide a little over $920,000. Mr. Riley stated that if a lesser rate is selected, the amount required from the fund balance will increase. He referred to previous distribution of worksheets that indicated if the tax rate increase was $.02, $715,000 would be used out of the fund balance, and almost $900,000 would be required for $.015. Mr. Riley pointed out that any proposed increase does not offset the total increase cost through principle and interest. All of any tax rate increase approved will go toward debt service, none to the general fund. Mr. Riley explained the need for a public hearing because of increased revenues anticipated by new appraisal values and final consideration at a future meeting. Councilmember Davis expressed his desire for the City Manager to analyze all departments of the City to insure that they are being operated as efficiently as possible. He said that he has a problem with some of the mid-management positions, asked him to see where we can squeeze a few dollars and perhaps cut a few positions if they are not necessary. Before he can consider a tax increase, Councilmember Davis said it will be important to know the budget is as tight as can be. He expressed appreciation for insurance negotiations, but said we have to look at how much we're paying people, and said he thinks we might be able to do with less of the professional positions. Minutes;M1 W;Page 6 Councilmember Goodson addressed the $11.2 million debt service remaining for about four years before declining, and questioned the future if projects are continually added. He said his constituents recognize and appreciate the benefits from projects that have been completed, but each had some other project they would have preferred being accomplished. Councilmember Goodson said the question was raised about when another tax increase would occur if the $.64 rate is passed. He discussed lesser rates, but asked the City Manager how long he would feel comfortable with a $.64 tax rate before another increase based on the current debt service and projects would occur. The City Manager responded that he could not speculate beyond three years, but feels very comfortable at least for that period of time with a $.64 tax rate. Councilmember Goodson questioned how to keep a favorable bond rating and the discomfort level of the fund balance. Mr. Riley answered that to keep a good bond rating, we need to keep about 25% of debt service in reserves. With the sale of bonds next year, there should be a balance of about $3 million, and that should be the minimum goal to keep in the fund. The proposed 2 '/ cent increase would generate about $900,000 for each of the next two years, but is not enough to pay for debt service. About $1.9 million will have to be taken from the reserves over a period of tvw years. With the 2 %cents, $535,000 will be taken this year and next year over $1.3 million from the fund balance to pay for the anticipated needs. Next year additional debt service will be added. Any lower rate will necessitate addressing the subject again next year. The public hearing was opened at 2:47 p.m. Mr. Al Wise, 2106 Hazel, voiced his opposition to a tax increase, said his neighbors are against any increase and cited situations that might arise with a tax increase. Mr. Charles Prater, 5210 Linda Lane, spoke in opposition to any tax increase, asked how our tax rate compares with similar size cities, spoke of industry down-sizing and questioned the City doing so, and asked for consideration of a senior citizen freeze on taxes. Mrs. Virginia Walker, 848 Lockwood Drive, spoke in opposition to a tax increase and subsidizing bike and hike trails and ice hockey rinks. She said the fixed income elderly and hard-working families would least enjoy the facilities and be hurt the most with a tax increase. She spoke of special interest groups using tax dollars to benefit their causes. Mrs. Walker said the City should only provide basics, and that keeping a large reserve account is only a temptation to use the money for non-essential spending. Mr. Tom Royal, 945 Central, commended Councilmember Ames for her comments and position. He interpreted her view as looking at our income and studying where we will budget and spend the money. Minutes;9/01196;Page 7 There being no one else wishing to speak, the public hearing was closed at 2:52 p.m. Mayor Moore announced that City Council will meet in the Council Chambers at 1:30 p.m. on September 8, 1998, at which time a vote will be taken to consider a tax increase. 4. Consider authorizing an exchange of property with Jefferson County involving the former BISD Administration Building and a parking lot adjacent to the Municipal Court Building Councilmember Cokinos moved to approve Resolution No. 98-234 authorizing exchange of the former BISD Administration Building in the 800 block of Neches Street for Lots 315 and 316, and the northwest 40 feet of Lots 305 through 309, in Block 49 of the Beaumont Addition to provide addition parking for the new Municipal Court. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames, and Davis Noes: None 5. Consider a resolution authorizing the intervention in the Entergy/Gulf States Fuel Filing Councilmember Ames moved to approve Resolution No. 98-238 authorizing the City Attorney to take all steps necessary including but not limited to the use of the law firm of Butler, Porter, Gay and Day in Austin to intervene in the fuel case contemplated by Entergy/GSU. Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Ames Noes: None COMMENTS " Councilmembers comment on various matters Councilmember Smith said that no one wants taxes increased, but if we are going to enjoy the economic development and extension of businesses and homes to the west of Dowlen Road, we have to expand streets and drainage projects. She spoke about the importance of the Folsom Road project and other projects that have been completed, the sales tax advantage derived from out of city shoppers at the Parkdale Mall area and the need for Minutes;9101136;Page 8 accessibility into the complexes, the wisdom of not depleting fund balances, and the progress made in drainage projects. Councilmember Smith said that "progress has to be paid for," and we cannot be remiss in keeping a sound fiscal policy, and therefore, is in favor of a tax increase. Councilmember Goodson commented that during his nine-year tenure on Council, tax increases have not been addressed often. Also, during that time Ward II was privileged to have good streets and drainage, but said he has learned to look at the needs of Beaumont broadly and as a whole, not just as a neighborhood. Decisions have to be made according to what is best for the entire city or the right thing to do. Monies are spent on things that are not basic, but Councilmember Goodson said "he believes the quality of a city and the quality of the economics of a city and its development are based upon the entirety." He said that some do get hurt more than others, and we should try to make the pain as equitable as possible. Councilmember Goodson said he has not been disappointed with decisions made on capital projects and thinks the best for the overall city has been done. He commented about the success of the Charlton-Pollard Neighborhood rehabilitation, and said a tax increase was talked about before adoption of last year's budget. Councilmember Cokinos said that his stand remains, and he is not in favor of raising taxes. Councilmember Ames referred to Item 4 and the exchange of property for a parking lot for the new Municipal Court building and the Municipal Court building being a capital project. Councilmember Ames said she would like to know how Beaumont's tax rate compares with city's of comparable size, but that the quality of life factor also has to be put into that mix. She said no one wants a tax increase, but calls from the community for various services are received often, and Councilmember Ames said she is still struggling with the issue of a tax increase. When a decision is made, she wants to be totally comfortable that we are within the guidelines of other cities, that we are running a tight ship fiscally and through human resources. She commented that taxes have not been raised during the five years she has served on Council, and a tax increase may be something we have to do to move forward and grow our city. Councilmember Davis said it may be time to give consideration to the request of individuals associated with Beaumont Power and Light either in work session or a regular meeting. He thanked all the people, over two hundred, who contacted and called him in the last few days. Councilmember Davis said that even though he was not successful, (in a bid for nomination as the candidate to replace Al Price) he learned a lot and is sure God is not finished with him yet. He commented about the final success of making Concord Road a reality, the support of Council in Ward III projects, and the role he must search out pertaining to property taxes. Councilmember Davis announced that he will meet with Ward III residents at City Hall on Monday, September 7, to discuss a possible tax increase. Councilmember Minutes;W1/98;Page 9 Davis expressed appreciation for Council support of all the recent public improvements in Ward III that include the Concord Road project, revitalization of Charlton-Pollard, Willard Library, Collier's Ferry, Sterling Pruitt Activity Center, and street lighting. He said that he must look at entertaining a tax increase, but that it cannot be without assurance that the budget is at bare bones, even if it requires establishing a limit of employment. Councilmember Davis said that we must analyze the number of employees, maximize efforts of everyone and be ready for change if required. He said that to some citizens hike and bike trails and hockey leagues are not important, but to younger generations these kinds of things are essential to encouraging them to remain in the area after completing their education. He stated that quality of life is important. Mayor Pro Tem Patterson thanked everyone who attended and supported the third anniversary of Operation One Vote last Thursday through hours of time and dollars. She said no one likes tax increases, but said infrastructure is crucial and Council has been very willing to work toward Ward IV infrastructure projects. Mayor Pro Tem Patterson said she will look at the whole picture and consider what is good for the whole city, but will particularly listen to Ward IV citizens. She said this will be a difficult decision and will be given the best vote at the next meeting. Councilmember Davis said he was reminded that Monday is Labor Day and is rescheduling the meeting with his constituents to Friday, September 4, at 6:00 p.m. in Council Chambers. Mayor Moore shared experiences since he has served on Council and said he looking at some good times in the future and spoke of comments about everyone having a special project they prefer over another. Mayor Moore said he has witnessed citizen concerns about flooding, fire or police protection, and other community problems. He said this Council has been bold and strong in doing what is right for the city and even though it was not in the budget, this Council committed to a $3 million drainage project ahead of schedule. Mayor Moore said he is very concerned about poor people, his mother is a senior citizen and spoke of balancing the burden for progression of the city. He discussed future growth, taking advantage of development, this Council not raising taxes in 1995 when other cities did, economic development and jobs, working with the school system, neighborhoods that have drainage concerns, and said a lot of improvement has to be made, but measurable improvements have been made throughout all of the city. Mayor Moore said it would be nice to get to a point of offering more privileges to senior citizens, commented that senior citizen demographics is growing, and that last week a bold step was taken to insure quality of life for senior citizens by moving forward with the Beaumont Retirement Hotel reconstruction. Mayor Moore further discussed other progressive moves, operating a tight ship in city management, fair treatment to all employees, taking advantage of leveraging opportunities, public enrichment, past reduction of property tax, the $.64 property tax rate equating to a $12 increase for a home valued at $50,000, the need for extending bus service, violating Minutes;9101/98;Page 10 $12 increase for a home valued at $50,000, the need for extending bus service, violating state law by using too much of our reserves, said he will consider all comments and said Council will try to do the right thing. *Public Comment (Persons are limited to 3 minutes) Mr. Lynn DeMary, 430 East Elgie, told Council that citizens appreciate the projects put forward throughout the city. He said that to sustain the $3 million reserve fund and pay principle and interest, we will need a 5 '/ % growth rate in the tax base. He commented that lower than expected revenues will warrant an eventual tax increase unless a way is found to contain scheduling of future projects. Mr. DeMary said the public numbers regarding the hockey league indicate that a $3.3 million bond issue sold at 5 % % or less can be repaid with $280,000 of new revenue. He spoke about bringing in 50 new families and increases in sales tax revenue supporting this effort without affecting property taxes. EXECUTIVE SESSION *Executive Session in accordance with Section 551.071 of the Government Code to discuss contemplated or pending litigation: Linda Frederick et al v. City of Beaumont Claim of Shanna Bond There being no further business, the meeting recessed at 3:33 p.m. to reconvene in executive session. r Mayor David W. Moore Barbara Liming, Deputy City ClCdrk Minutes;9/01198;Page 11